What is the term for variable expenses that are directly related to the production or purchase of a product?
A) long-term liabilities
B) fixed expenses
C) cost of goods sold
D) operating expenses

Question

Quizplus · Accepted Answer

Cost of goods sold (COGS) refers to the direct costs incurred in producing a product, such as raw materials and labor. These expenses vary based on the volume of production and are considered variable expenses. Long-term liabilities (A) refer to debts that are not due within one year, fixed expenses (B) are expenses that remain the same regardless of production volume, and operating expenses (D) refer to expenses required to maintain a business but are not directly related to producing a product.

What Is the Term for Variable Expenses That Are Directly